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Here's Why Investors Should Retain IQVIA Holdings (IQV) Stock

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A prudent investment decision involves buying stocks that have solid prospects and selling those that carry risks. At times, it is rational to hold certain stocks that have enough potential but are weighed down by tough market conditions.

Here we discuss about IQVIA Holdings Inc. (IQV - Free Report) , a stock that has gained 29.9% year to date, significantly outperforming the industry’s 12.6% growth. The long-term (three to five years) expected earnings per share growth rate for the company is 13.6%.

We believe that the company has the ability to sustain this momentum, courtesy of a vast geographical presence and strong technological suite.

Expanding Global Healthcare System

IQVIA Holdings serves the life sciences industry (which is a major part of the global healthcare system) and has a vast geographic presence. The company looks well poised to benefit from expanding global healthcare system. Also, it is optimistic about witnessing multiple acquisition opportunities across the industry moving ahead.

Life sciences organizations are expected to commercialize their operations in the emerging markets just as they did in developed markets, creating ample opportunities for IQVIA Holdings. Notably, the IQVIA Institute estimates that spending on pharmaceuticals in emerging markets to witness a CAGR (compound annual growth rate) of 6% to 9% through 2022.

IQVIA Holdings Inc. Revenue (TTM)

Strong Technological Suite

IQVIA Holdings looks promising courtesy of its technological suite. Currently, the company offers an extensive range of technology solutions in the form of cloud-based applications and related services. Its Software as a Service (“SaaS”) solution also supports a vast range of clinical and commercial processes. By combining its database, healthcare expertise and therapeutic information collected from over 100 countries, IQVIA Holdings creates Global Market Insight offerings such as MIDAS, Analytics Link and Disease Insights.

Furthermore, IQVIA Holdings secured major wins for its tech offerings, in the form of different awards and deals with new and old clients, in the first and the second quarter of 2018.

Zacks Rank & Key Picks

Currently, IQVIA Holdings carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Business Services sector include CRA International (CRAI - Free Report) , FTI Consulting (FCN - Free Report) and NV5 Global (NVEE - Free Report) . While CRA International and FTI Consulting sport a Zacks Rank #1 (Strong Buy), NV5 Global carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

CRA International, FTI Consulting and NV5 Global have an impressive earnings surprise history, with an average four-quarter beat of 38.6%, 58.3% and 12.7%, respectively.

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